Documents :-
1. Aadhar Card
2. Pan Card
3. All Accounts
TDS on Rent – Applicability and TDS Rate
- Land.
- Building.
- Land appurtenant to a building.
- Machinery.
- Plant.
- Equipment.
- Furniture.
- Fittings.
Who shall deduct TDS on rent?
Requirement of TDS on rental advance?
Deducting TDS on rent
TDS Rates for Rent
- Plant, machinery or equipment-2%.
- Rent of land, building and furniture for individuals and Hindu Undivided Family-10%
- Rent of land, building or furniture in case of others-10%.
Deposit of TDS by Deductor
- Any payment made by or on behalf of the Government, the concerned entity shall deposit the applicable tax on the same day if depositing without a challan. If the concerned entity deposits the tax with challan, the entity shall deposit on or before seven days from the end of the month from the date of deduction.
- For amount credited or paid in the month of March, the entity shall deposit the tax on or before seven days from the end of the month from the date of deduction, along with the challan or by the 30th of April.
TDS Certificate for Rent
Non-Government Deductor
- The deadline for issuing certificates for the months of April-June would be on the 30th of July.
- The deadline for issuing certificates for the months of July-September would be the 30th of October.
- Deadline for issuing certificates for the months of October-December would be the 30th of January.
- The deadline for issuing certificates for the months of January-March would be on the 30th of May.
Government Deductor
- The deadline for issuing certificates for the months of April-June would be the 15th Of August.
- The deadline for issuing certificates for the months of July-September would be the 15th of November.
- Deadline for issuing certificates for the months of October-December would be the 15th of February.
- The deadline for issuing certificates for the months of January-March would be on the 30th of May.
TDS on Long Term Lease – Upfront Lease Charges
Is TDS applicable for Warehouse Charges?
TDS on Rent Not Deducted
When TDS on Rent is NOT Applicable
- The total amount of the rent credited shall not exceed Rs.1,80,000 during the financial year.
- Individuals and HUF can normally avoid a deduction, except in cases when the individual or HUF engages in a business or profession or liable for a tax audit.
- Sharing or proceeds of film exhibition between a film distributor and film exhibitor, where the latter owns a movie theatre
- Any taxes payable to the Government would avoid TDS.
Avoiding TDS on Rent – Form 13 – Income Tax
Credit for TDS on Advance Rent
Hotel Rent – TDS Applicability
Displaying Advertisement Rent – TDS Applicability
Building and Furniture – Let out by Separate Persons
New Section 194IB
Computation of TDS under section 194IB
TDS @5 percent = 5% * Rs.6,60,000 = Rs.33,000As the deduction of TDS applies for once in a year, the rent annually paid= Rs.55,000*12 = Rs.6,60,000
Remitting TDS
- Click on the “Online Form 26QC for TDS on Rent.
- Select Form 26QC for Payment of TDS on Rent.
- Both Tenant and landlord PAN number.
- Details of address and contact details
- Select financial year in the form based on the date of payment previously done.
- Select the tax applicable based on landlords PAN.
- Choose the Period of Tenancy.
- Select the total rent payable and rent paid in last month.
- Enter the date of Payment and TDS amount.
- Select the option for “e-tax payment immediately” to pay taxes through the net banking account
- Finally select for the Payment option
- PAN details will be verified as per the details entered in the Income Tax department database.
- Upon providing proper details for ITD, click on the “SUBMIT” button.
- After clicking the submit button, the portal generates the Acknowledgement number
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